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The headline seems to imply they're selling them at a loss, but aren't they really selling them at a profit and just haven't sold enough yet to cover their fixe
by josephcsible 4y ago
The headline seems to imply they're selling them at a loss, but aren't they really selling them at a profit and just haven't sold enough yet to cover their fixed costs like tooling?
- samtho 4y agoMost of it is the R&D, but I’m sure tooling is in there, just likely a much smaller cost in comparison.
- meragrin_ 4y ago"haven't sold enough yet to cover their fixed costs" is just another way of saying they are selling at a loss. And no, they aren't selling them above the non-fixed costs either. To reach profitability, they need to do more than scale. They need to reduce battery costs and find design/engineering improvements. Those are actually provide more improvement to the profitability than scaling production up. The numbers are right there in the slides in the article.